Trading Statement

Stanelco PLC
17 August 2006

Stanelco PLC
17 August 2006


Stanelco PLC ('Stanelco' or 'the Company')


17 August 2006

Trading update


The Company announced on the 14th July 2006 in its interim results for the six
month period ending 30 April 2006 that its closing cash position at 30 April
2006 was GBP0.3m. The Company started the period with a cash balance of GBP4.4m
and made investments in research and development of GBP0.6m and increased its
levels of stock from GBP2.6m at the year end to GBP3.1m. The Company also
invested GBP1.2m in capital expenditure in the period.

Since the half year end, the Company raised GBP3.7m (net of expenses) by way of
an equity placing in June 2006 of which GBP1.6m was used to meet a stage payment
for the acquisition of Biotec and GBP2.1m was for working capital purposes. Of
that GBP2.1m, GBP2.0m has been used for the ongoing commercialisation of the
Group's technologies and meeting the Group's operational running expenses since
1 May 2006, and GBP0.1m has been used for capital expenditure.


The Company also stated in those interim results that it was considering its
funding requirements and funding options for the next phase of its development.
As at today's date the Company has cash at bank of GBP0.9m  with an unused
overdraft facility of GBP0.2m.



The Company estimates that its current cash at bank of GBP0.9m, together with
projected receivables and working capital needs is sufficient to meet its cash
requirements for a further three months in the absence of further funding or new
revenue streams commencing in the period.



Since 2000, Stanelco's business model has transformed from a manufacturer and
supplier of capital goods into an intellectual property company with interests
in markets with significant growth potential, which include sustainable
packaging and environmentally responsible sealing solutions for the packaging
industry.



As indicated in the interim results, in order to enable the Group to move into
the next phase of the commercialisation of its intellectual property portfolio
and to meet its working capital requirements, the Company is currently exploring
all financing options including a public equity issue.



The Company will update the market once any further information is available.



Martin Wagner, Stanelco Chief Executive said:



'While the Company is exploring all of its financing options, it continues to
actively progress the commercialisation of its products.



The Company is in advanced negotiations with a number of potential joint venture
partners in the USA to compound biodegradable resin.  This is to meet the
demands currently expressed to Stanelco by major multiple retailers and global
fast food chains.  Letters of intent with two of these companies have been
exchanged and the Company believes that these will lead to contracts in the
short term.



We acknowledge that Stanelco has encountered delays in rolling out GREENSEAL to
the market. The delays have primarily resulted from the limitations of the food
packaging industry to allow access to machines to test the technology in a
factory environment.   The Board believes that these delays will not impact on
the potential success of the project.'



Contact



Martin Wagner
Chief Executive
02380 867 100



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